1. When Tonya chose the chicken sandwich, her opportunity cost was the burger.
2. When Jimmy chose the licorice, his opportunity cost was the jelly beans. (It's the jelly beans since the nut clusters are not included in the next alternative because of his allergies to it.)
3. When Mary chose the jacket, her opportunity cost was either the dress or the shoe, whichever was her next best alternative. (The statement does not give enough information to identify her opportunity cost. It could not be both since an opportunity cost is the next <em>best</em> alternative and not <em>all</em> alternatives.)
4. When Joe chose the Ford truck, his opportunity cost was the Chevrolet.
5. When the city council chose to build the music stage, their opportunity cost was the wading pool. (The parking lot which people would have wanted is not considered because we are talking about the City Council's opportunity cost.)
I believe that it would actually be when it would be a job that you would be specifically good at, and in this case from looking at your options, your correct answer would be C.
Answer:
Since the question is incomplete, we could infer that you like to know how to calculate opportunity cost.
Explanation:
Opportunity cost is the value of the next best alternative or option.
Opportunity Cost= FO−CO
where:
FO=Return on best foregone option
CO=Return on chosen option
Let's take for example, Jose expected return on investment in producing one orange is 20 percent over the next year, and also expects the return of investment for melon to be 18 percent over the same period.
His opportunity cost of choosing the melon over the orange using the formula FO−CO = (20% - 18%), which equals two percentage points.
Answer:
b. The producer who gives up less of other goods to produce Good X has the smaller opportunity cost of producing Good X
Explanation:
<u>The opportunity cost is the cost of the best alternative.</u>
In this case, the producer uses factors (labor, raw materials, capital) to produce good X. His opportunity cost is the goods he would produce instead of good X.
A producer who gives up less of the other goods means his best alternative is lower than one who gives up more.
<em>For example</em>
if a producer can do
10 good X
or 50 of good Y
The opportunity cost for good X is 5 units of Y
if another producer can do
10 good X
or 20 of good Y
The opportunity cost of good X is 2 units of Y
For this second producer, it is more feasible to produce X than the first producer. It renounces to fewer unis of good Y
Financial assets and liabilities have
been shown to lend themselves more readily to fair value. Financial assets refer
to cash, equity in another company and contracts that will result in cash, while
financial liabilities refer to contractual obligations, or owing of cash.
